Decentraland was the talk of the town in November 2021. Right after Facebook announced it would change its rebrand to Meta, gaming and metaverse tokens, including MANA, skyrocketed from that euphoria. In less than a month, MANA presented nearly 660% returns around its highs. But that didn’t last too long.
At the end of November, MANA’s price promotion had cooled down. In early December, it started to decline with the rest of the broader market. At the time of going to press, it was still trading 50% below its ATH.
In fact, recent broader market recovery hasn’t been able to do much for MANA either.
To be or not to be
There seemed to be an interesting trend in the charts. Zooming out a bit on the daily chart, the price action formed what is called a symmetrical triangle pattern. Now there is no inherent bullishness or bearishness in such a candlestick pattern.
If the price manages to break out or break out of the narrow consolidation zone that has formed over the past two weeks, that is the direction in which the altcoin will continue.
Since November, it has accumulated in a very narrow range of about $2.5-2.8. Such consolidation means it is preparing for a big step. However, we have yet to see which direction it will go.
On-chain stats also yielded a confusing set of inferences. Thus, development activity for this crypto has been steadily increasing since the end of February. This bodes well and shows that developers are continuously working to improve the ecosystem, building the trust of community members.
Despite this, the daily active addresses in the chain are steadily decreasing. Simply put, stakeholders and investors are not exactly thrilled with MANA and what it offers in the current market scenario.
Along the same lines, according to Glassnode data, the number of new addresses on the network is also decreasing.
All is not lost
MANA’s price action is on the verge of a move thanks to a symmetrical triangle pattern, which can be on either side. However, on-chain fundamentals seem to indicate that one downward move is slightly more likely than the others. It should be noted that a failure from here on would not be the end of the story for Decentraland.
While some people are still skeptical about the metaverse, Citi Group says it sees huge potential in this concept of augmented reality, or metaverse. According to Fortunethe company has also publicly said it believes the metaverse economy could be worth $13 trillion by 2030.
So from a long-term POV, things remain optimistic. However, short-term withdrawals must be taken into account.